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Consumer willingness to pay for environmental attributes - results from AERU research

Publication date:  May 2020
Publication reference number:  CR 424

This report presents research conducted by Lincoln University on consumers' willingness to pay for the various attributes associated with New Zealand’s green premium, in different markets and for different products. The attributes that were tested includes minimising water pollution, environmental sustainability and good water management.

The report includes information on different markets and products and provides commentary on  the following topics:  

  1. A best assessment of average premium for environmental attributes
  2. A brief comment on premiums for water quality attributes along with any available figures on the quantum of this
  3. A brief description of what customers by market (including by country and commodity) mean by environmental attributes and the importance they place on these attributes.

The report finds that a premium of around 20% could be thought to be reasonable and that, in a survey of six of New Zealand’s markets, all countries surveyed (including New Zealand) rated water quality as the most important factor when considering environmental condition in food and beverage production and supply.

Nine out of 10 considered water quality to be important, with around half (53%) considering it very important. Participants from developing countries rated all factors of environmental condition higher than their developed country counterparts.